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PulteGroup (PHM) Dips More Than Broader Markets: What You Should Know

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In the latest trading session, PulteGroup (PHM - Free Report) closed at $54.10, marking a -0.84% move from the previous day. This change lagged the S&P 500's daily loss of 0.02%.

Coming into today, shares of the homebuilder had gained 13.08% in the past month. In that same time, the Construction sector gained 9.03%, while the S&P 500 gained 6.61%.

Wall Street will be looking for positivity from PHM as it approaches its next earnings report date. This is expected to be April 27, 2021. In that report, analysts expect PHM to post earnings of $1.20 per share. This would mark year-over-year growth of 62.16%. Our most recent consensus estimate is calling for quarterly revenue of $2.91 billion, up 26.75% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.15 per share and revenue of $13.64 billion. These totals would mark changes of +18.73% and +23.56%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for PHM. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. PHM is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, PHM currently has a Forward P/E ratio of 8.88. For comparison, its industry has an average Forward P/E of 9.61, which means PHM is trading at a discount to the group.

Also, we should mention that PHM has a PEG ratio of 0.93. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Building Products - Home Builders was holding an average PEG ratio of 0.8 at yesterday's closing price.

The Building Products - Home Builders industry is part of the Construction sector. This group has a Zacks Industry Rank of 45, putting it in the top 18% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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